Zensar Technologies LimitedQ1 FY27 Results & Financial Update
Zensar Technologies Limited: Q1 FY27 consolidated results and company financials – revenue ₹150.83 Cr, PAT ₹18.38 Cr. Explore reported YoY/QoQ movements, margins, business drivers and management commentary. This page does not provide a rating, target price or investment recommendation.
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Quarterly Results AnalysisExplore Zensar Technologies Q1 FY27 quarterly results and earnings: revenue, profit (PAT), EBITDA, margins, YoY and QoQ growth, order book or business updates where reported, financial performance and management commentary. Reported figures and Nivata calculations are shown separately; no buy, sell or hold recommendation is provided.
Quarter overview
Quarterly earnings analysis
Zensar Technologies reported revenue of $159.5 million for the first quarter of fiscal 2027, marking a sequential constant currency growth of 1.1% on the back of broad-based volume gains.
In INR terms, consolidated revenue from operations reached ₹15,083 million, representing a year-on-year growth of 8.9% and a sequential quarterly increase of 4.0% compared to the preceding quarter.
Profit after tax for the quarter was reported at ₹1,838 million, reflecting a PAT margin of 12.2%, which represents a sequential decrease of 220 basis points.
Management attributed the compression in profitability primarily to the transition and early-stage execution costs associated with a major large deal win.
The broader operating environment remained marked by prolonged decision cycles, slower project mobilization, and a continued restraint in discretionary technology investments across enterprises.
Banking and Financial Services emerged as the company's largest growth engine, expanding 8.3% sequentially and 14.7% year-on-year in constant currency, whereas Telecommunication, Media and Technology faced ongoing headwinds.
The company maintained a strong balance sheet position with net cash and cash equivalents standing at $317.5 million at the close of the quarter.
Total revenue stood at $159.5M, reflecting 1.1% QoQ growth in constant currency terms and a 2.0% decline YoY in constant currency terms.
01 · Business model
What does Zensar Technologies do?
Zensar Technologies Limited is a leading experience, engineering, and engagement solutions company operating in the global information technology services sector.
The company conceptualizes, builds, and manages digital products through experience design, data engineering, and advanced analytics for over 175 global clients.
Headquartered in Pune, India, Zensar operates as part of RPG Enterprises across more than 30 locations worldwide, including major hubs in the US, Europe, Africa, and Latin America.
Its primary revenue engines span Digital and Application Services alongside Cloud Infrastructure and Security, serving verticals such as Banking, Financial Services and Insurance, Manufacturing and Consumer Services, TMT, and Healthcare.
02 · Historical context
What shaped the business before this quarter
Zensar operates as an established technology subsidiary of RPG Enterprises, which was founded in 1979.
During previous periods ending in fiscal 2026, the company recognized exceptional items relating to one-time past service costs under newly enacted labor codes.
03 · Financial snapshot
Current quarter vs the two useful baselines
| Metric | Q1 FY27 | Year-ago | Previous quarter |
|---|---|---|---|
| Revenue from operations | ₹150.83 Cr | ₹138.50 Cr | ₹145.04 Cr |
| Total income | ₹156.56 Cr | ₹144.17 Cr | ₹151.54 Cr |
| Profit before tax | ₹24.62 Cr | ₹24.06 Cr | ₹27.59 Cr |
| Profit after tax | ₹18.38 Cr | ₹18.20 Cr | ₹21.06 Cr |
| EPS | ₹8.11 | ₹8.01 | ₹9.29 |
04 · Why it moved
Why the quarter looked the way it did
What drove revenue
Delivered 1.1% sequential constant currency revenue growth driven by broad-based volume expansion.
Banking and Financial Services expanded by 8.3% QoQ and 14.7% YoY in constant currency, contributing 48.8% of total revenue.
What drove margins
EBITDA margin softened sequentially by 150 basis points to 14.6%, impacted by transition and early-stage execution expenses for a large deal win.
Profitability was partially cushioned by a reversal of management bonus provisions which provided a positive margin lift.
EBITDA margin moved from 16.1% in Q4 FY26 to 14.6% in Q1 FY27, driven by exchange impact (+0.7%), large deal impact (-2.0%), other direct costs (-1.5% including travel, visa, and training), and reversal of management bonus (+1.3%).
PAT percentage stood at 12.2%, registering a 220 bps QoQ decline.
EBITDA stood at 14.6% (down 150 bps QoQ) and Profit after tax stood at 12.2% of revenue (down 220 bps QoQ) driven by transition and early-stage execution costs for large deals.
EBITDA for the quarter stood at 14.6%, representing a sequential drop of 150bps, and Profit after tax stood at 12.2% of revenue, a QoQ decrease of 220 bps.
05 · Demand, customers & order book
Where demand is coming from
Reported an order book of $149.2 million at the end of the quarter, showing a 62.9% sequential increase.
Active clients stood at 177, with clients contributing over $1 million increasing to 89 and those over $10 million rising to 19.
BFSI accounts for 48.8% of revenue, MCS for 24.9%, TMT for 16.2%, and HLS for 10.0% of Q1 FY27 revenue.
Reported order book for Q1 FY27 was $149.2M, marking a 62.9% QoQ decrease.
Top 5 clients contributed 24.7%, top 10 clients contributed 38.9%, and top 20 clients contributed 56.6% of total revenue in Q1 FY27.
Maintained 6 clients in the $20M+ category, increased to 19 clients in the $10M+ category, and 32 clients in the $5M+ category.
Healthcare and Life Sciences registered a QoQ revenue decline of 3.8% and YoY decline of 8.7%; Manufacturing and Consumer Services declined 2.3% QoQ and 3.4% YoY; Telecommunication, Media and Technology declined 9.1% QoQ and 28.0% YoY in constant currency.
Banking & Financial Services grew 8.3% QoQ; Healthcare & Life Sciences declined 3.8% QoQ; Manufacturing & Consumer Services declined 2.3% QoQ; TMT declined 9.1% QoQ.
Large deal wins strengthened company positioning, opening access to high-value, strategic programs and enabling more effective competition in complex enterprise engagements.
Clients are looking for technology partners who can help translate AI ambitions into measurable business outcomes through deep domain expertise, strong engineering capabilities, and AI-native solutions.
Secured multiple client wins in Q1FY27 including grants lifecycle modernization for a US property insurer, payments optimization for an energy leader, enterprise AI agent governance for an American department store holding company, and Guidewire cloud modernization.
Wins included grants lifecycle modernization using ZenseAI accelerators for a US property insurer; payments and settlement operations optimization for a global energy leader; enterprise AI agent governance for an American department store holding company; AI adoption and SAP modernization for an African fashion retailer; Guidewire cloud modernization for a US P&C insurer; and an AI-powered deduction audit platform for a supply chain solutions provider.
06 · Segments, products & geography
Which parts of the business are doing the work
Segments and products
Generated segment revenue of ₹11,672 million with segment results of ₹1,734 million during the quarter.
Contributed segment revenue of ₹3,411 million with segment results amounting to ₹701 million.
Geography and market mix
The US region registered a sequential QoQ constant currency growth of 2.5% and accounted for 66.2% of total revenue.
Europe recorded a 1.4% sequential decline in constant currency while posting 3.0% YoY growth, contributing 21.5% of revenue.
Africa contributed 12.3% of total revenue, experiencing a minor sequential constant currency decline of 1.4%.
USA region grew by 2.5% QoQ cc (-3.7% YoY cc) and represents 66.2% of total Q1 FY27 revenue.
UK & EU region declined by 1.4% QoQ cc (+3.0% YoY cc) and represents 21.5% of total revenue.
South Africa region declined by 1.4% QoQ cc (-0.8% YoY cc) and represents 12.3% of total revenue.
US region grew 2.5% QoQ, Europe declined 1.4% QoQ, and Africa declined 1.4% QoQ.
US region registered QoQ revenue growth of 2.5% and YoY decline of 3.7% in constant currency; Europe registered a QoQ decline of 1.4% and YoY growth of 3.0%; Africa registered a QoQ decline of 1.4% and YoY decline of 0.8%.
US region registered a QoQ revenue growth of 2.5% and a quarterly YoY decline of 3.7% in constant currency.
Europe region registered a QoQ revenue decline of 1.4% and a quarterly YoY growth of 3.0% in constant currency.
Africa region registered a QoQ revenue decline of 1.4% and a quarterly YoY decline of 0.8% in constant currency.
US region registered QoQ revenue growth of 2.5% (-3.7% YoY); Europe region registered a QoQ decline of 1.4% (+3.0% YoY); Africa region registered a QoQ decline of 1.4% (-0.8% YoY) in constant currency terms.
USA revenue grew 2.5% QoQ cc (66.2% of total), UK & EU declined 1.4% QoQ cc (21.5% of total), and South Africa declined 1.4% QoQ cc (12.3% of total).
07 · Capacity, projects & execution
What is being built, commissioned or delivered
Capacity, production and utilisation
Utilization excluding trainees improved sequentially to 85.1% from 84.3% in the previous quarter.
Large deal execution negatively impacted EBITDA margin walk by 2.0% in Q1 FY27.
The company has 11,000+ employees working across 30+ locations including San Jose, Seattle, Princeton, Cape Town, London, Colombia, and Mexico City.
The company has over 11,000 employees operating across 30+ locations globally.
08 · Strategy & new businesses
How the company is trying to change its growth mix
Accelerated deployment of proprietary ZenseAI accelerators across multiple client modernization projects, including grants lifecycle management, SAP modernization, and Guidewire cloud migrations.
09 · Reported developments
What changed operationally
LTM voluntary attrition further improved to 9.6% from 9.8% in the preceding quarter.
BFSI vertical grew by 8.3% QoQ cc (14.7% YoY cc) and accounts for 48.8% of Q1 FY27 revenue.
Employee attrition further improved to 9.6%, representing a 20 bps QoQ decrease.
Clients with $10M+ revenue increased to 19 (compared to 15 in Q4 FY26), and top 10 clients contributed 38.9% of total revenue.
The US region registered a QoQ revenue growth of 2.5% in constant currency.
BFS remained the largest growth engine contributing 48.8% of revenue, registering QoQ revenue growth of 8.3% and quarterly YoY growth of 14.7% in constant currency.
10 · Pressure points & risks
What is not going smoothly
TMT vertical saw a sharp decline of 9.1% QoQ cc and 28.0% YoY cc, contributing -$2.6M to the revenue walk.
Order book declined significantly by 62.9% QoQ to $149.2M.
Healthcare and Life Sciences registered a QoQ decline of 3.8%; Manufacturing and Consumer Services registered a QoQ decline of 2.3%; Telecommunication, Media and Technology registered a QoQ decline of 9.1% in constant currency.
Europe and Africa regions both registered a QoQ revenue decline of 1.4% in constant currency.
Healthcare and Life Sciences, Manufacturing and Consumer Services, and Telecommunication, Media and Technology all experienced QoQ and YoY constant-currency revenue declines.
11 · Cash flow & balance sheet
Profit is one thing. Cash and funding tell another part of the story.
Total accounts receivable days improved to 75 days at the end of the quarter compared to 78 days in the previous quarter.
Cash balance stood at $317.5M at the end of Q1 FY27, down $2.0M QoQ.
Net cash and cash equivalents reached $317.5M at the end of Q1FY27, reflecting a YoY increase of 0.6%.
Capital allocation & funding
The company maintained a debt-free status with zero borrowings on its balance sheet at the end of the quarter.
12 · Beyond the numbers
What changed beyond the numbers
Reported update
Analyst recognitions
Recognized as a Leader in Everest Group’s Guidewire Services PEAK Matrix Assessment 2026 and as a Major Contender in Oracle Cloud Applications Services.
Reported update
Workplace awards
Ranked #6 in India's 'Best Companies to Work For 2026' by Great Place to Work and ranked #1 in the IT Services sector.
13 · Previous-quarter changes
What changed since the previous quarter
Total headcount expanded to 11,342 employees following gross additions of 1,451 employees during the quarter.
14 · Management call deep dive
What management said on the conference call
Operating takeaways
27 key pointsUSA region grew by 2.5% QoQ cc (-3.7% YoY cc) and represents 66.2% of total Q1 FY27 revenue.
UK & EU region declined by 1.4% QoQ cc (+3.0% YoY cc) and represents 21.5% of total revenue.
South Africa region declined by 1.4% QoQ cc (-0.8% YoY cc) and represents 12.3% of total revenue.
BFSI accounts for 48.8% of revenue, MCS for 24.9%, TMT for 16.2%, and HLS for 10.0% of Q1 FY27 revenue.
Other direct costs impacting margins include higher expenses related to travel, visa, and training.
Reported order book for Q1 FY27 was $149.2M, marking a 62.9% QoQ decrease.
Top 5 clients contributed 24.7%, top 10 clients contributed 38.9%, and top 20 clients contributed 56.6% of total revenue in Q1 FY27.
Maintained 6 clients in the $20M+ category, increased to 19 clients in the $10M+ category, and 32 clients in the $5M+ category.
Large deal execution negatively impacted EBITDA margin walk by 2.0% in Q1 FY27.
EBITDA margin moved from 16.1% in Q4 FY26 to 14.6% in Q1 FY27, driven by exchange impact (+0.7%), large deal impact (-2.0%), other direct costs (-1.5% including travel, visa, and training), and reversal of management bonus (+1.3%).
PAT percentage stood at 12.2%, registering a 220 bps QoQ decline.
Cash balance stood at $317.5M at the end of Q1 FY27, down $2.0M QoQ.
Won multiple deals in Q1FY27 including grants lifecycle modernization for a US property insurer, payments operations optimization for an energy leader, enterprise AI agent governance for a department store holding company, AI adoption for a fashion retailer in Africa, Guidewire cloud modernization for a US P&C insurer, and an AI-powered deduction audit platform.
Recognized as a Leader in Everest Group's Guidewire Services PEAK Matrix Assessment 2026, Major Contender in Oracle Cloud Applications Services, ranked 20th in Top 50 Store Services Providers, and Aspirant in Healthcare Payer Digital Services PEAK Matrix Assessment 2026.
Banking and Financial Services remained the largest growth engine, contributing 48.8% of total revenue, with QoQ revenue growth of 8.3% and quarterly YoY growth of 14.7% in constant currency.
Healthcare and Life Sciences registered a QoQ revenue decline of 3.8% and YoY decline of 8.7%; Manufacturing and Consumer Services declined 2.3% QoQ and 3.4% YoY; Telecommunication, Media and Technology declined 9.1% QoQ and 28.0% YoY in constant currency.
US region registered QoQ revenue growth of 2.5% and YoY decline of 3.7%; Europe registered a QoQ decline of 1.4% and YoY growth of 3.0%; Africa registered a QoQ decline of 1.4% and YoY decline of 0.8% in constant currency.
EBITDA stood at 14.6% (down 150 bps QoQ) and Profit after tax stood at 12.2% of revenue (down 220 bps QoQ) driven by transition and early-stage execution costs for large deals.
Net cash and cash equivalents reached $317.5M at the end of Q1FY27, reflecting a YoY increase of 0.6%.
US region grew 2.5% QoQ, Europe declined 1.4% QoQ, and Africa declined 1.4% QoQ.
Banking & Financial Services grew 8.3% QoQ; Healthcare & Life Sciences declined 3.8% QoQ; Manufacturing & Consumer Services declined 2.3% QoQ; TMT declined 9.1% QoQ.
Large deal wins strengthened company positioning, opening access to high-value, strategic programs and enabling more effective competition in complex enterprise engagements.
Clients are looking for technology partners who can help translate AI ambitions into measurable business outcomes through deep domain expertise, strong engineering capabilities, and AI-native solutions.
Profitability was largely impacted due to transition and early-stage execution for the large deal.
EBITDA for the quarter stood at 14.6%, representing a sequential drop of 150bps, and Profit after tax stood at 12.2% of revenue, a QoQ decrease of 220 bps.
Recognized as a Leader in Everest Group's Guidewire Services PEAK Matrix Assessment 2026 and Major Contender in Oracle Cloud Applications Services PEAK Matrix Assessment 2026.
EBITDA dropped 150 bps QoQ to 14.6% and profit after tax decreased 220 bps QoQ to 12.2% of revenue due to transition and early-stage execution for the large deal.
15 · Key Q&A
The quarter, answered directly
What does Zensar Technologies do?
Zensar Technologies Limited is a leading experience, engineering, and engagement solutions company operating in the global information technology services sector.
What is the clearest takeaway from Q1 FY27?
Zensar Technologies reported revenue of $159.5 million for the first quarter of fiscal 2027, marking a sequential constant currency growth of 1.1% on the back of broad-based volume gains.
What drove revenue or demand?
Delivered 1.1% sequential constant currency revenue growth driven by broad-based volume expansion.
What mattered most for margins or profitability?
EBITDA margin softened sequentially by 150 basis points to 14.6%, impacted by transition and early-stage execution expenses for a large deal win.
What changed operationally beyond the headline numbers?
Utilization excluding trainees improved sequentially to 85.1% from 84.3% in the previous quarter.
What are the main pressure points disclosed for the quarter?
TMT vertical saw a sharp decline of 9.1% QoQ cc and 28.0% YoY cc, contributing -$2.6M to the revenue walk.
16 · Scenario calculator
Earnings sensitivity: what if growth and margins change?
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17 · Next filing checkpoints
What the next disclosure can confirm or change
- 01
Large deal mobilization: Monitor the pace of execution and subsequent margin stabilization following the transition of recent large deal wins.
- 02
Discretionary spend trends: Watch for signs of recovery in discretionary technology spending across telecommunications and consumer services verticals.
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